Investment in The Coconut Industry by Nancy Cheruiyot
409 - 'Lean', what it is and how to use it
1. Lean: What is it and how
to use it?
An introduction to applying Lean to
improve service quality and cost
William Fell
April 4th, 2012 Exceptional people delivering exceptional results
2. The challenges of ‘traditional’ change in the workplace
Limited delivery following after months of work and the
production of long reports
Lack of engagement generating resistance to change
Flavour of the month feeling so your people ignore it
The organisation staggers from one initiative to the next, never
delivering the planned results
Focus on the next big new idea – lots of up front cost and no real
benefit – built on existing process rubble
Customer service damaged
In summary lots of cost, time and effort with little real
improvement.
3. Some of the challenges for universities today
Increased student expectations
Harsher competitive environment
Scarcer resources
New fees regime (England) and uncertain funding futures
Newly emergent competitors – domestic and international
Identifying and securing new income streams
4. People and change
For an organisation to change successfully the people within it
have to change and make the transition associated with change
It has been estimated that 80% of change projects that fail do so
because ‘leaders’ fail to manage the people issues associated
with change
To minimise the risks of failure, leaders need to understand how
people react to change but more importantly if change is to be
successful people need to be given the opportunity to be
involved.
5. Lean – what is it?
A methodology for achieving excellence in customer service, by
eliminating waste and optimising the flow of customer value
through the workplace
It also gives employees on the front line the motivation, tools and
freedom to make major improvements to their daily work
A people-based approach to implementing Lean can help
organisations achieve a radical improvement in productivity very
quickly and build a sustainable incremental growth thereafter.
6. Lean – what is it?
Effective improvement and change management
Engages all of the organisations people
Focuses on the customer and what they value
Based on understanding the operational data and the process
demand
Defines new processes
Designs processes to flow across functional / organisational
interfaces
Eliminates non value adding steps
Generates short term and long term improvements
Based around focused and intensive interventions
Delivering continuous improvement.
7. Lean – what it is not!
Short-term cost reduction programme
Process to support headcount reduction
Only for front line staff
Based on using qualitative metrics to define impact
Deployed without clearly defined ownerships, roles and
responsibilities
A diet
A computer thing
A silver bullet
Just about the process.
8. A brief history of Lean
Lean Frontiers:
2000 – Lean Service &
Lean Systems
Green Lean
Green lean
(Lean) Six Sigma
Lean accounting
present Thinking
Lean IT
1980s – Vanguard “Check Lean Six Sigma
Model” Manufacturing (GE & Motorola)
2000
Toyota Production
TQM
1950s – System
(1980s/90s)
(Ohno, Shingo)
1980
Deming
early 1900s – Ford & GM Management
1950s Mass Production Method
/ Joseph Juran
Sakichi Toyoda Scientific
1890s – Father of Japan’s
Scientific
Management
Management
Industrial Walter Shewhart
early 1900s Revolution
Taylorism
(Bell Telephone)
9. Deming’s 14 principles
1. Create constancy of purpose towards improvement
2. Adopt the new philosophy
3. Cease dependence on inspection
4. Move towards a single supplier for any one item
5. Improve constantly and forever
6. Institute training on the job
7. Institute leadership
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans
11. Eliminate management by objectives
12. Remove barriers to pride of workmanship
13. Institute education and self-improvement
14. The transformation is everyone’s job
10. Examples of how Lean thinking differs from the norm
‘Command & Control’ ** ‘Lean Thinking’
Who is in charge? Who is the customer and how do I
What’s my job description? add value?
Let’s get economies of scale How much demand is there?
Let’s standardise the process Let’s get economies of flow
What does the contract say? Let’s standardise the quality of the
outcome
What’s the target?
Let’s cooperate
Whose fault is this error?
How capable are we at delivering
We need a quick win
what the customer wants?
‘Good enough’.
Let’s learn from mistakes
Let’s adapt over time
** Adapted from John Seddon (2003)
Freedom from Command and Let’s aim for perfection.
Control
11. Purpose – Measures - Method
Seddon J. (2008) ‘Systems Thinking in the Public Sector’
12. The core of Lean
Define who are the customers – recipients, payers and / or other
stakeholders (e.g. owners of interfacing processes)
Define desired outputs and value in customer terms
Define current process (value stream) - as it really is, not as it is
supposed to be
Identify & eliminate waste - all steps should directly contribute to
satisfying the need of the customer
Make the process flow so the customer can ‘pull’ (i.e. demand
from the customer).
14. Remember though…..Waste is a sensitive issue
It is critical to eliminate ‘waste’
It is also critical to recognise that the non value adding activities
may have been a core part of someone’s job for many years
It is the activities that are non value adding.....not the person.
15. Some Lean tools………
Here’s a list of some of the tools
developed for Lean improvements:
Theory of constraints
7 / 8 wastes
Value / failure demand
A3 thinking
Value stream map / mapping
VA / NVA identification
Voice of the customer
Kaizen (blitz, blast) / Rapid
SIPOC
Improvement Event (RIE)
Whole systems check.
Control charts
PDSA / PDCA
Other complementary tools
Poka Yoke (mistake proofing)
Cooperative inquiry
Root Cause Analysis / 5 Whys
Appreciative inquiry
SPC (Statistical Process Control)
Clean language
5S
Symbolic modelling.
16. Lean – how to use it…….a 5-step method
Senior stakeholders Service Managers Sponsor owned; project team designed and led
17. Whole system information
Customer - the beneficiary of the service / processes
Roles (participants / staff) - the people / roles who perform the tasks
/ activities in the service / processes (includes capacity available)
Purpose – what is the main purpose of the department / service for
the team (and also for individuals)
Work - what are the core activities carried out in the delivery of the
service (functions / processes) (includes demand on the system)
Stakeholders – where / how the service fits into the larger
perspective and which other organisations are involved (includes
suppliers)
Environment - IT systems / software and paper / electronic forms
used to deliver the service / processes
Specifications / policies – what exists to define the service
delivered, policies that apply and service level agreement with
clients/ suppliers.
18. Finding the quick wins
Should have minimal impact on separate business areas
Be quick and inexpensive to implement
Have strong support through the team / organisation
Require clear and simple changes by the participants
Be low risk
Quick to implement – ideally less than one month
Measurable – outcome saves time
Solves frustrating issue that has hung around for a long time
Get as close to the root cause as possible
Must not cause any knock-on effects.
19. Finding the focus areas
Bigger work streams to get something done / changed
Mini-project or big project
Utilises ‘strengths and opportunities’ to overcome any
‘weaknesses and threats’
Gets to the root cause
Usually found in P2T2 areas (always related to ‘purpose’):
Policies / specifications
Process improvement / streamlining
Training
Technology.
20. Lean and culture
Lean challenges command and control management behaviours
It encourages all staff to develop improvements
It encourages the organisation to trial improvements in a
controlled environment
It is action orientated not report orientated.
21. Lean and leadership
Lean challenges many of the traditional leadership styles in
organisations
It requires the leadership team to:
Set the direction
Define the parameters for the work
Commit the resource
Support the delivery of the outputs
Within those limits the leadership teams hands responsibility to
the front line team to
Redesign the process
Identify waste
Develop actions that will reduce waste
Design the team structures
Deliver continuous improvement.
22. Lean and your customers
Lean focuses on what the customer values
It deals with the processes that produce outputs not areas of
functional responsibility
It seeks to eliminate non value adding activities from the
processes
It uses measures to drive the desired organisational behaviours
It understands customer demands
It uses data to develop improvement actions.
23. Lean and your people
Lean change is a way of operating not a one off change
programme
Your people are engaged directly in delivering the results
The required outputs are based on what your customer values
The parameters and direction are defined by the leadership team
The people who do the work design the changes
Lean creates a structure which encourages ongoing improvement.
24. Lean….the journey
Phase of maturity
1 2 3 4 5 6
Efficiency Process Service Service Culture Lean Systems
activities Aware Improvement Transformation Change Aware
Systems Maturity
Check benefits
are being
realised?
Level of Lean
Choose tools Lean culture
and begin embedded
reviews across Confirm
the Organisation people-based
approach
Make efficiency Continuous
Set-up
& capacity improvement
Broad & BPI team Start Lean
savings Include cycle in place
shallow reviews behaviour shift
process across the capability in
reviews Council approach
Begin
Lean
training
25. Lean and your university……size of the prize!
Many organisations are good at the things that add value
Many organisations are not good at reducing the non value adding
steps in processes
Lean defines this non value adding activity as waste
Lean releases the resources that are taken up with that wasteful
activity
The resource prize in eliminating the waste is significant – 40% to
70% reductions in resource time are possible and achieving.
26. References
Aligning processes to competitive needs using lean practices -
Professor David Stockton, De Montford University, Leicester.
Analysis of Lean Implementation in UK Business Schools and
Universities - Zoe Radnor & Giovanni Bucci, AtoZ Business
Consultancy.
Website and associated collaterals – University of St. Andrews.
Freedom from Command and Control – John Seddon
Systems Thinking in the Public Sector – John Seddon
Out of the Crisis – W. Edwards Deming
The machine that changed the world – Womack & Jones (and Roos)
Lean Management Masterclass – Myles, Scottish Executive.
27. Where to go for more information?
Core Principles iTunes (free podcasts):
Freedom from Command and Control (John Seddon) The Systems Thinking Review
The Toyota Way (Jeffry Liker) Lean Summit 2010
Out of the Crisis (W.E. Deming) Profit through process (Six Sigma IQ)
Tools & process and many others…
The Lean Service Toolbox (John Bicheno) Useful (free) clips
Historical context Why Targets are Dangerous
http://www.youtube.com/watch?v=pfcVwIcRxxM
The Machine that Changed the World (Womack and
Jones) Deming Library excerpt
http://www.youtube.com/watch?v=GHvnIm9UEoQ
Operations management and Trabant Quality Control
strategic lean http://www.youtube.com/watch?v=mIAYxWCXF8A
Understanding Variation (Donald Wheeler)
Your speaker today
Specialist: William Fell
Critical Chain (Eliyahu Goldratt) william.fell@capita.co.uk
Lean IT ( Steven Bell & Michael Orzen) 07557 004 307
Practical Lean Accounting (Brian Maskell & Bruce
Baggaley)
Open Space Technology (Harrison Owen)
Clean Language (Wendy Sullivan & Judy Rees)